What is the successful new business venture that emerged from TDK’s global training programme? – The truth about how talent development drives business innovation

Introduction

What image comes to mind when you hear the term "in-house training"?

Many domestic companies report that their training sessions are merely formal gatherings or recreational activities. However, some companies are achieving surprisingly significant results from such training.

A manufacturer of electric fields headquartered in Nihonbashi.TDKHowever, let me introduce a case where a global training program implemented for employees working overseas led to a groundbreaking new business in 2024.

In this article,

• TDK's Global Training Program: An "Unexpected Origin"
• The process of business innovation born from human resource development
• Insights into new ways of working for Japanese companies

We will explain these three points, along with specific examples.

What groundbreaking new business venture emerged from TDK's global training program?

TDK had an in-house training program that was highly regarded for its "serious approach." This training program, which began in 2017, was implemented for approximately 90,000 employees working overseas (out of a total of approximately 100,000 employees).

Four levels of global training

TDK's training is divided into four levels according to job title:

Showcasing results at one of the world's largest technology trade shows.

This training program culminated in the subsidiary "SensEI," established in Singapore and offering the following services:

• Sensors are hardware
• AI software for fault prediction, etc.

At CES, the world's largest technology trade show held in Las Vegas in January 2025, TDK officially showcased its new products at its booth. This is an extremely rare and highly commendable initiative for a major US company.

Why "serious" training is important

Andreas Keller, Executive Officer and Head of Human Resources at TDK Corporation, stated that "a waiting list has been created for those who wish to participate." This is a change from the initial situation where "there were few applicants and some even said it was a waste of money."

This training program was created against the backdrop of organizational transformation at TDK. Over the past 20 years or so, TDK has strengthened its M&A (mergers and acquisitions) activities with overseas companies, and with employees involved in these activities now making up three-quarters of the workforce, the training program was launched "to connect people who are unfamiliar with TDK's history and culture, and who come from different cultures."

Specific business development process

We are utilizing the results of our training program in the following ways:

1. New business development – Establishing a subsidiary like SensEI
2. Internal improvement activities – adopted as a system within the company.

This success might seem like a coincidence at first glance, as it didn't originate from a new business development project or anything like that. However, it actually arose naturally from an effort across the entire organization.

What is the key to TDK's successful talent development?

Why was TDK able to achieve results that differed from typical training programs in Japanese companies? Below are three key points.

Point 1: Actively utilize members from diverse countries and regions.

The diversity of participants is our greatest strength.

• Jim Tran, General Manager of the US headquarters, and others are key members.
• Proposals gathered from different countries, including China, were evaluated.
• At the end of January 2024, five international members presented their proposals at TDK's headquarters in Nihonbashi, Tokyo.

A shift to a new business that integrates artificial intelligence technologies in the edge domain.

CEO Noboru Ito praised the idea, saying, "I like this idea," and instructed them to take specific action, saying, "Create a business plan and bring it to me."

The team members, who were from different countries and regions, were surprised by the unexpected additional orders, but they managed to complete them in just three months. When they explained the new project again in May, the establishment of a subsidiary to handle the new business was officially decided.

Point 2: Advanced training programs developed in collaboration with business schools

TDK collaborates with global business schools such as IESE in Spain and IMD in Switzerland. This is important for the following reasons:

Point 3: Organizational change is being led by the HR department.

Since 2020, TDK has moved its human resources headquarters to Munich, Germany, and has transformed its workforce so that non-Japanese employees now account for approximately 701 TP3T of the total workforce. Andreas Keller says, "We want to start with the human resources department and then expand to other headquarters departments."

The following changes are actually occurring:

• The former Hungarian ambassador to Japan has been appointed as the head of the public relations department.
• Half of the corporate officers are non-Japanese.

Thus, a movement has begun to break away from the traditional organizational structure covered by the Nikkei, a newspaper often criticized as representing conservative Japanese companies, and to show a willingness to globalize.

Background for participating in the training: Coordination with succession planning

Participation in the training program is not only for skill improvement, but also has the following objectives:

• Creating a succession plan
• Visualizing talent from a global perspective
• Building internal networks

By combining these elements, we contribute to the growth of the entire organization.

Details of the training implementation process

This process involves hard work, often starting at night, but the resulting business is praised as "a rare example of 'serious' training in the United States."

Increase in the number of people wishing to participate

Keller says he "persuaded those in charge" and changed their minds with the positive feedback from those who participated in the training. As a result:

"Now there's a waiting list of people who want to participate."

This is the situation we've reached. This represents a shift from the initial situation where "there were few applicants and it was even said to be a waste of money."

Implications and points of caution for Japanese companies

TDK's success story offers important insights for the Japanese business environment. The key points are summarized below.

Reaffirming the importance of human resource development

There was a time when TDK was criticized as a conservative Japanese company, often labeled a "Japanese traditional company," but TDK no longer fits into that category.

In the midst of increasing globalization, the following approaches have proven effective:

• Leveraging diverse talent – Utilizing the culture and knowledge of employees working overseas
• Continuous investment in training – development from a long-term perspective, not a short-term one.
• Organizational Structure Transformation – Leading the Transformation from the HR Department

Point to note 1: View this not merely as "training," but as a "business opportunity."

In many companies, training tends to be treated as a "cost," but in TDK's case:

It has received praise such as, "This is the first time I've experienced such a serious training program."

It is crucial to view training not only as a means of "skill improvement" but also as a way to "create new businesses." The focus should be on practical activities such as business plan development, rather than simply lectures or workshops.

Point 2: Understand the importance of diversity.

TDK has approximately 100,000 employees, but about 90,000 of them work outside of Japan. Over the past 20 years or so, the company has strengthened its M&A activities with overseas companies, and employees who have joined from these companies now account for three-quarters of the total workforce.

We launched a training program to connect people from different cultures. This is not just about "ensuring diversity," but also a path to actual business innovation.

Point 3: Measuring results and continuous improvement

At TDK, it's as follows:

By continuously monitoring these factors and repeatedly improving the program itself, we can achieve better results.

Column: Why "Seriousness" is Important

TDK is being praised for having a level of training that even major companies like Qualcomm and Boeing haven't provided. The reason is:

1. Relevance to specific business results
What's needed is training that goes beyond simply improving skills and generates ideas that can actually be turned into businesses.

2. Contribution to organizational-wide transformation
We will start with the HR department and then expand it to other headquarters departments to reform the culture of the entire organization.

3. Making talent visible and succession planning
It is also useful for visualizing talent from a global perspective and for creating succession plans.

Advice for Japanese Companies

Even conservative Japanese companies can achieve results like TDK's by starting initiatives such as the following:

1. Promoting the participation of diverse talent – Diversifying talent through M&A and overseas expansion.
2. Considering collaboration with business schools – to help students acquire a global perspective.
3. We expect leadership from the HR department – ensuring HR becomes central to organizational transformation.

Summary

When people hear the term "in-house training," they might imagine formal meetings or recreational activities. However, the case of TDK, an electric field manufacturer located in Nihonbashi, demonstrates a completely different possibility.

The global training program, which began in 2017, has produced the following results in just a few years:

• Establishment of a new business "SensEI"
• New product exhibitions at some of the world's largest trade shows, such as CES.
• Organizational transformation to connect employees with diverse cultural backgrounds

This success is not simply due to the "implementation of training" initiative. It involves a combination of the following elements:

1. Integrating talent development and business creation – viewing training as an investment, not a cost.
2. Leveraging Diversity – Utilizing Knowledge from Different Countries and Regions
3. Organization-wide transformation – Leading the transformation from the HR department

TDK's CEO expressed his approval of the new business venture, saying, "I'm a fan of this idea," but this wasn't just mere praise. Concrete actions were taken, including the creation of a business plan and the establishment of a subsidiary.

In the Japanese business environment, many companies still face criticism for being "Japanese traditional companies." However, TDK's case demonstrates the possibility of changing that stereotype. In the midst of increasing globalization, for conservative Japanese companies to find new growth opportunities is not merely a measure to avoid being "left behind." Rather, it is an important step in establishing a position to "lead the future."

TDK's case provides a clear answer to the question of how investment in human resource development can generate business innovation. Even initiatives that might seem like a "cost," such as in-house training, have the potential to contribute to the growth of the entire organization.